Chairman’s Speech at the 21st Annual General Meeting - On 8th August, 2013

August 8, 2013

MUMBAI: The decline in domestic traffic, sharp depreciation of the rupee and high aviation fuel prices has impacted the financials of your Company.
Despite the turbulent times, your Company has taken significant steps such as re-negotiation of contract, route rationalization, focus on ancillary revenue and re-deployment of aircraft on profitable routes to reduce cost and improve productivity and retain its premier position.
As regards your airline, the international business has continued to be robust. In the financial year 2012-13, revenues from international operations accounted for 58 per cent of the Company’s total revenues. As you would have observed from the Annual Report for the year 2012-13, against the backdrop of sluggish economic scenario, your Company has managed to achieve healthy seat factors on international routes and the same continues to robust.
Moving to a significant development for your airline, Your Company and Etihad Airways have forged a strategic alliance, where in Etihad Airways will invest USD 379 million for a 24% stake in your company. We are in the process of seeking necessary regulatory approvals from the concerned authorities.
The year gone by has been a tough year. I would like to take this opportunity to encourage our Management team and our devoted employees across our network to continue with their efforts towards further reducing costs and enhancing our passenger and freight revenues.
Your Company continues to work towards building a stronger base for the future through hard work, dedication and team effort by demonstrating the ability to take tough decisions that are in the long term interest of the Company.
My fellow Directors, the Management of your Company and I continue to be optimistic on our future growth and on the expansion of your Company’s route-network and I can confidently assert that we will spare no efforts to realize our objectives and goals.
I further stress the need to collectively address the problems faced by the Industry in order to achieve a self sustaining and profitable growth and nurture this vital Industry back to health.
I would like to take this opportunity to express our most sincere gratitude to our valued clients, our loyal Jet Privilege Customers for their continuing patronage and to our esteemed stakeholders for the faith reposed in your Airline.
Jet Airways Training Academy Private Limited, a subsidiary of your Company has commenced certificate courses in in-flight, aviation and general service training.
Jet Privilege Private Limited has been incorporated as a subsidiary of your Company to manage and unlock the huge potential through our loyalty program Jet Privilege.
My sincere thanks go out to the various ministries of the Government of India including the Ministry of Civil Aviation, Ministry of Finance and Ministry of Commerce & Industry for taking significant measures to aid the industry by permitting the Foreign Direct Investment (FDI) in Civil Aviation and also the Director General of Civil Aviation, the Bureau of Civil Aviation Security, Airports Authority of India, DIAL and MIAL for their constant support.
I would also like to express my thanks to Indian Banks and financial institutions, US Ex-Im Bank, our Insurers, our strategic partners Boeing, Airbus, ATR, GE, CFM and Pratt & Whitney and our Lessors for their continued support through these challenging times.
Finally, my gratitude goes out to our loyal staff and each and every member of our Management team for their efforts despite adverse external factors, to sustain high service levels and support the Company with their hard work, dedication and loyalty.
Thank you.